Euro Continues to Struggle a Bit Against the US Dollar

Euro continues to struggle a bit against the US dollar today, even after the latest unemployment release in the eurozone. Signs that a muted recovery might come into play during the last part of 2013 are not quite enough for the 17-nation currency to log gains against the greenback right now.

For the first time in more than two years, unemployment in the eurozone has fallen. Eurostat reports that 24,000 fewer people in the eurozone claimed jobless status. The change represents an improvement in the situation from May to June. Overall unemployment for the eurozone remains the same, however, at 12.1 per cent.

This good news could point to a muted recovery later in the year, but was offset by disappointing retail sales numbers out of Germany. German retail sales dropped by  1.5 per cent in June, and retail sales fell in Spain as well. So, even though a small recovery might be starting, it still isn’t enough to pull the eurozone out of its funk and end three years in crisis mode.

By contrast, the latest ADP numbers in the United States show some improvement in private sector employment, and Forex traders are waiting for the Federal Reserve policy announcement later today.

At 13:19 GMT EUR/USD is down to 1.3233 from the open at 1.3262. EUR/GBP is up to 0.8734 from the open at 0.8706. EUR/JPY is down to 129.9685 from the open at 130.0150.

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